Analysts set Nvidia stock price target

Core Viewpoint - Bank of America Securities has raised its price target for Nvidia from $150 to $160, driven by increasing demand from sovereign AI infrastructure projects, which may help mitigate future revenue losses from U.S. chip export restrictions to China starting in 2026 [1][9]. Group 1: Price Target and Market Reaction - Nvidia shares closed at $135.34, up $5.41 (4.16 percent) following the revised price target and news of Saudi AI deals, but dipped to $132.78 in pre-market trading, approximately 20.5% below the new $160 target [2]. - UBS lowered its price target for Nvidia from $180 to $175, while DA Davidson maintained a Neutral rating with a target of $120, indicating mixed sentiment across Wall Street [8]. Group 2: Revenue Potential from Sovereign AI Projects - Sovereign AI projects are projected to generate between $3 billion and $5 billion annually for Nvidia, potentially totaling up to $20 billion over multiple years [3]. - The sovereign AI market segment is expected to exceed $50 billion in annual global spending, representing about 10 to 15 percent of the total AI infrastructure market, estimated at $450 to $500 billion [4]. Group 3: Nvidia's Strategic Partnerships and Contract Value - Nvidia is expected to secure $7 billion in direct contract value, with the first phase of the Saudi partnership involving 18,000 Blackwell GPUs valued at approximately $700 million [5]. - Analysts anticipate that several hundred thousand of Nvidia's advanced GPUs will be delivered to sovereign customers over the next five years [5]. Group 4: Market Dynamics and Long-term Outlook - Sovereign AI projects are seen as complementary to commercial cloud investments, focusing on training large language models tailored to local needs while addressing U.S. data center limitations and export restrictions [6]. - Analysts view sovereign AI spending as a significant long-term growth driver for Nvidia, with billions already committed and large-scale GPU deployments planned [9].